The jobs of thousands of IRS employees are at risk, as the ‘Department of Government Efficiency’ (DOGE) founded by Elon Musk has decided to do large-scale IRS layoffs as part of cutting government expenditure.
This layoff can have a direct impact on millions of taxpayers, especially those who are about to file their tax returns before the April 15 deadline. According to experts, there may be a decrease in the service of the IRS, which may cause problems for taxpayers. However, if taxpayers do electronic filing with correct and complete information, they can avoid potential problems.
How IRS layoffs could impact your tax filing
This decision has been taken about three weeks after the start of the tax filing season, which can affect a large number of taxpayers. Experts believe that this decision is part of the policy of cutting the government budget.
IRS funding and controversy:
There was already a controversy over the funding received by the IRS. In 2022, when then-President Joe Biden gave $80 billion in funding to the agency under the ‘Inflation Reduction Act’ (IRA), Republican lawmakers were opposing it. Now due to this funding cut, the jobs of temporary employees of the IRS are at risk.
According to a report, the IRS had about 15,000 temporary employees, most of whom were appointed under IRA funding. But now, due to this cut, the jobs of an estimated 6,000 to 7,000 employees are at risk.
Service may be delayed
Experts believe that the layoff of these employees can have a direct impact on taxpayers. Especially, if there is a mistake in a taxpayer’s tax return or additional review is needed, it may take longer than before.
Usually, it takes 21 days for the IRS to process electronically filed tax returns. But experts say that if there is a mistake in the return, it may take more time.
The IRS system can catch any error such as incorrect personal information or incomplete information, which may cause the taxpayer to contact the agency.
According to tax expert Tom O’Seben, ‘If you have filed taxes with the correct information, you will not feel any change. But if there is an error, the process may be longer this time because the number of employees has reduced.’
File taxes early if refund is expected
If you expect to get a tax refund, file your tax return as soon as possible. According to San Diego tax attorney Adam Brewer, ‘If all your information is correct and the required forms have been completed, it will be beneficial to file taxes as soon as possible.’
In addition, there is a debate going on among the lawmakers regarding government expenditure, due to which there is a possibility of government shutdown next month. In such a situation, if there is any mistake in the tax return, then there may be an even longer delay in getting the refund.
Easy ways to get refund soon:
- File taxes electronically.
- Choose the direct deposit option for payment.
- Use the IRS’s ‘Where’s My Refund?’ tool or the IRS2Go app to know the status of the refund.
Conclusion
The layoff of IRS employees can affect millions of taxpayers. However, if taxpayers file their taxes as soon as possible with the correct information, they can avoid potential delays. Also, keep in mind that if there is a government shutdown, the tax process may be further affected. Therefore, filing your tax return correctly without any delay would be the best strategy.